# Technology One (TNE.AU)

Canonical: https://gigainvestors.com/s/TNE.AU

Analysis as of: 2026-10-16T07:36:41.463Z. Financial observations: FY1997–FY2025.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 30.62 per share; close as of 2026-10-15.

Estimated value: low AUD 4.35 per share, central AUD 5.61 per share, high AUD 6.45 per share. Buy at or below the central value AUD 5.61 per share. Valuation as of 2026-10-16T07:36:41.463Z; scenarios are not confidence intervals.

Expected annual return: 4.2% at the stated quote. About 4.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.25×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.21×

- FY2017: 0.21×

- FY2018: 0.09×

- FY2019: 0.26×

- FY2020: 0.28×

- FY2021: 0.32×

- FY2022: 0.31×

- FY2023: 0.28×

- FY2024: 0.29×

- FY2025: 0.29×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: >100%

- ROIC, second-lowest year: 53.7%

- Typical minus recent gross margin: -4.7 pp

- Typical gross margin (annual median): 81.6%

- Recent gross margin (lower of latest and 3-year median): 86.3%

- Years with nonpositive capital: 2

- Capital spending / revenue: 16.0%

- ROIC including acquisitions, ten-year median: 56.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: >100%

- FY2017: >100%

- FY2018: 26.7%

- FY2019: 53.7%

- FY2020: >100%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: >100%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.65×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 338M

- Net income, five-year total: AUD 520M

- Return on incremental invested capital: 51.4%

- Working capital / revenue, annual change: -0.7 pp

- Working capital / revenue, change between three-year averages: -4.6 pp

- Working capital / revenue, final three-year average: 8.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.56×

- FY2022: 0.64×

- FY2023: 0.39×

- FY2024: 0.76×

- FY2025: 0.80×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 184.4% vs 132.2%

- Per-share earnings: 0.13 to 0.36 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.2%

- Ordinary dilution, 5-year annual growth: 0.5%

- Market cap gain: AUD 11B

- Cumulative retained earnings: AUD 95M

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 0.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.5%

- Per-share value change: AUD 0.23

- Per-share value, starting three-year median: AUD 0.13

- Per-share value, ending three-year median: AUD 0.36

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 0.1%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 300M

- Cumulative net income, 10 years: AUD 749M

- ROIC, first three-year median: >100%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2016: AUD 0.13

- FY2017: AUD 0.14

- FY2018: AUD 0.07

- FY2019: AUD 0.18

- FY2020: AUD 0.20

- FY2021: AUD 0.22

- FY2022: AUD 0.27

- FY2023: AUD 0.32

- FY2024: AUD 0.36

- FY2025: AUD 0.42

### accounting: pass

- Sloan accruals: -17.6%

- Receivables to sales index (DSRI): 0.76×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.14×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.69×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.1%

- FY2017: -0.8%

- FY2018: -10.6%

- FY2019: -5.8%

- FY2020: -10.1%

- FY2021: -8.3%

- FY2022: -6.5%

- FY2023: -14.3%

- FY2024: -12.5%

- FY2025: -17.6%

## Holders

## Price story

Down 25% since Jul 2025 · sales +18.2%

Story as of 2026-10-16T10:00:07.918Z; price observation 2026-10-15.

Price needs cash profits to grow 28.7% a year for ten years

### Sales · FY2024–2025

sales +18.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: AUD 249M 

- FY2017: AUD 273M 

- FY2018: AUD 253M 

- FY2019: AUD 285M 

- FY2020: AUD 298M 

- FY2021: AUD 311M 

- FY2022: AUD 368M 

- FY2023: AUD 429M 

- FY2024: AUD 507M 

- FY2025: AUD 599M 

### Gross margin · FY2025

gross margin 86.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 83.9% 

- FY2017: 83.1% 

- FY2018: 77.9% 

- FY2019: 80.2% 

- FY2020: 59.7% 

- FY2021: 78.1% 

- FY2022: 75.2% 

- FY2023: 86.2% 

- FY2024: 87.9% 

- FY2025: 86.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are AUD 598.5 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2025: revenue 598502000; grossProfit 516562000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 86.2% to 87.9% during 2023–25; it earns over 100% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2023: grossProfit / revenue = 86.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2024: grossProfit / revenue = 87.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2025: grossProfit / revenue = 86.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); 10-year return on capital observations [[2016,2.5999518238011174],[2017,1.8443841352740749],[2018,0.2674164782328979],[2019,0.5368678422125207],[2020,4.878474225948024],[2021,2.309893680305682],[2022,1.720425052604505],[2023,1.3990947759955157],[2024,1.0103927694213097],[2025,1.3218812959671011]]; median 1.5597599143000105. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 8.3% of cash earnings on expansion; earns 51.4% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2016: growth capex 965000; upkeep 3924000; owner earnings 41344000. Growth capex / owner earnings = 0.023340750773993807.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2017: growth capex 1182903.5550651485; upkeep 4926096.4449348515; owner earnings 43804903.55506515. Growth capex / owner earnings = 0.02700390730408011.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2018: growth capex 0; upkeep 3388000; owner earnings 23405000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2019: growth capex 0; upkeep 2350000; owner earnings 62235000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2020: growth capex 776990.6473439857; upkeep 44061009.352656014; owner earnings 31652990.647343986. Growth capex / owner earnings = 0.02454714804047065.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2021: growth capex 890517.5021886453; upkeep 52036482.497811355; owner earnings 40404317.502188645. Growth capex / owner earnings = 0.02204015702382319.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2022: growth capex 4306486.576245077; upkeep 62975513.42375492; owner earnings 56916686.57624508. Growth capex / owner earnings = 0.07566298804966706.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2023: growth capex 5055994.522388861; upkeep 110070005.47761114; owner earnings 39676794.52238886. Growth capex / owner earnings = 0.12742951095849891.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2024: growth capex 7836167.170160636; upkeep 84802832.82983936; owner earnings 90050767.17016064. Growth capex / owner earnings = 0.08701943821703766.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2025: growth capex 9156562.919526145; upkeep 97232437.08047386; owner earnings 110533362.91952614. Growth capex / owner earnings = 0.0828398112359305.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); Incremental return on capital 0.5141517994312915, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); Dividend observations: [[2016,27958000],[2017,30370000],[2018,33002000],[2019,35850000],[2020,38988000],[2021,42504000],[2022,46127000],[2023,56605000],[2024,64846000],[2025,78413000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); FY2025: cash repurchases 30379000 AUD.

### Are managers owners

Insiders own 8.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TNE.AU SharesStats.PercentInsiders = 8.853 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 28.7% yearly over ten years; actual growth was 11.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:41.463Z); Ten-year compound average after fade. Initial solved rate 0.4080520202751695. Price 30.62; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.11122224183758973 → FY2025 0.3352105409317925. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 5.63 per share

- 2016-11: AUD 5.85 per share

- 2016-12: AUD 5.65 per share

- 2017-01: AUD 5.15 per share

- 2017-02: AUD 5.02 per share

- 2017-03: AUD 5.13 per share

- 2017-04: AUD 5.46 per share

- 2017-05: AUD 5.63 per share

- 2017-06: AUD 5.76 per share

- 2017-07: AUD 5.37 per share

- 2017-08: AUD 4.99 per share

- 2017-09: AUD 5.02 per share

- 2017-10: AUD 5.04 per share

- 2017-11: AUD 5.02 per share

- 2017-12: AUD 4.96 per share

- 2018-01: AUD 4.92 per share

- 2018-02: AUD 4.80 per share

- 2018-03: AUD 5.19 per share

- 2018-04: AUD 4.96 per share

- 2018-05: AUD 4.30 per share

- 2018-06: AUD 4.25 per share

- 2018-07: AUD 4.94 per share

- 2018-08: AUD 5.53 per share

- 2018-09: AUD 5.58 per share

- 2018-10: AUD 5.44 per share

- 2018-11: AUD 6.23 per share

- 2018-12: AUD 6.16 per share

- 2019-01: AUD 6.97 per share

- 2019-02: AUD 7.38 per share

- 2019-03: AUD 8.00 per share

- 2019-04: AUD 8.79 per share

- 2019-05: AUD 7.15 per share

- 2019-06: AUD 7.88 per share

- 2019-07: AUD 7.66 per share

- 2019-08: AUD 7.58 per share

- 2019-09: AUD 7.18 per share

- 2019-10: AUD 7.37 per share

- 2019-11: AUD 9.19 per share

- 2019-12: AUD 8.29 per share

- 2020-01: AUD 8.52 per share

- 2020-02: AUD 7.84 per share

- 2020-03: AUD 8.00 per share

- 2020-04: AUD 9.50 per share

- 2020-05: AUD 9.14 per share

- 2020-06: AUD 8.79 per share

- 2020-07: AUD 8.41 per share

- 2020-08: AUD 8.08 per share

- 2020-09: AUD 7.94 per share

- 2020-10: AUD 8.97 per share

- 2020-11: AUD 9.18 per share

- 2020-12: AUD 8.20 per share

- 2021-01: AUD 8.63 per share

- 2021-02: AUD 8.46 per share

- 2021-03: AUD 9.34 per share

- 2021-04: AUD 9.48 per share

- 2021-05: AUD 9.20 per share

- 2021-06: AUD 9.31 per share

- 2021-07: AUD 9.44 per share

- 2021-08: AUD 9.88 per share

- 2021-09: AUD 11.36 per share

- 2021-10: AUD 12.21 per share

- 2021-11: AUD 12.36 per share

- 2021-12: AUD 12.81 per share

- 2022-01: AUD 10.43 per share

- 2022-02: AUD 9.87 per share

- 2022-03: AUD 11.48 per share

- 2022-04: AUD 10.49 per share

- 2022-05: AUD 10.50 per share

- 2022-06: AUD 10.71 per share

- 2022-07: AUD 11.72 per share

- 2022-08: AUD 11.87 per share

- 2022-09: AUD 10.60 per share

- 2022-10: AUD 12.05 per share

- 2022-11: AUD 13.60 per share

- 2022-12: AUD 13.14 per share

- 2023-01: AUD 14.48 per share

- 2023-02: AUD 14.90 per share

- 2023-03: AUD 14.54 per share

- 2023-04: AUD 15.10 per share

- 2023-05: AUD 16.38 per share

- 2023-06: AUD 15.65 per share

- 2023-07: AUD 15.75 per share

- 2023-08: AUD 15.41 per share

- 2023-09: AUD 15.51 per share

- 2023-10: AUD 14.52 per share

- 2023-11: AUD 15.68 per share

- 2023-12: AUD 15.37 per share

- 2024-01: AUD 15.79 per share

- 2024-02: AUD 16.94 per share

- 2024-03: AUD 16.97 per share

- 2024-04: AUD 16.25 per share

- 2024-05: AUD 17.78 per share

- 2024-06: AUD 18.60 per share

- 2024-07: AUD 20.58 per share

- 2024-08: AUD 22.91 per share

- 2024-09: AUD 23.86 per share

- 2024-10: AUD 24.43 per share

- 2024-11: AUD 30.21 per share

- 2024-12: AUD 31.31 per share

- 2025-01: AUD 30.94 per share

- 2025-02: AUD 29.47 per share

- 2025-03: AUD 27.84 per share

- 2025-04: AUD 30.06 per share

- 2025-05: AUD 41.06 per share

- 2025-06: AUD 41.01 per share

- 2025-07: AUD 41.08 per share

- 2025-08: AUD 39.97 per share

- 2025-09: AUD 38.46 per share

- 2025-10: AUD 36.90 per share

- 2025-11: AUD 30.10 per share

- 2025-12: AUD 27.96 per share

- 2026-01: AUD 25.19 per share

- 2026-02: AUD 26.07 per share

- 2026-03: AUD 26.84 per share

- 2026-04: AUD 27.99 per share

- 2026-05: AUD 29.84 per share

- 2026-06: AUD 29.47 per share

- 2026-07: AUD 30.76 per share

- 2026-08: AUD 32.59 per share

- 2026-09: AUD 28.96 per share

- 2026-10: AUD 30.63 per share

## Annual estimated value (AUD per share)

- FY2016: low AUD 2.03 per share, central AUD 2.79 per share, high AUD 3.23 per share

- FY2017: low AUD 2.23 per share, central AUD 3.06 per share, high AUD 3.55 per share

- FY2018: low AUD 1.82 per share, central AUD 2.14 per share, high AUD 2.44 per share

- FY2019: low AUD 2.41 per share, central AUD 3.36 per share, high AUD 3.89 per share

- FY2020: low AUD 2.23 per share, central AUD 2.80 per share, high AUD 3.21 per share

- FY2021: low AUD 1.93 per share, central AUD 2.31 per share, high AUD 2.63 per share

- FY2022: low AUD 2.32 per share, central AUD 2.82 per share, high AUD 3.21 per share

- FY2023: low AUD 2.65 per share, central AUD 3.08 per share, high AUD 3.49 per share

- FY2024: low AUD 3.39 per share, central AUD 4.26 per share, high AUD 4.85 per share

- FY2025: low AUD 4.54 per share, central AUD 5.80 per share, high AUD 6.63 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:42:21.877Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations